I. Overview of K line
1 and K-line history
Candlestick map, also known as candle map, daily line, yin and yang line, bar line, etc. K-line, commonly known as "K-line", originated from the rice market transactions in the Tokugawa shogunate era (1603 ~ 1867) in Japan in the 8th century, and was used to calculate the daily rise and fall of rice prices. Because of its unique drawing method, it is introduced into the analysis of stock market price trend. After more than 300 years of development, it has been widely used in stock, futures, foreign exchange, options and other securities markets.
2. The basic composition of K-line
K-line is a columnar line, which consists of shadow lines and entities. The hatched part above the entity is called the upper hatched line and the lower hatched line. Entities are divided into positive and negative lines. Among them, the shadow line represents the highest and lowest price of the day's transaction, and the entity represents the opening price and closing price of the day.
3.k-line classification
According to the calculation cycle of K-line, it can be divided into daily K-line, weekly K-line, monthly K-line and annual K-line. Weekly K-line refers to the K-line chart drawn with the opening price on Monday, the closing price on Friday, the highest price and the lowest price in the whole week. The monthly K-line is based on the opening price of the first trading day of a month, the closing price of the last trading day and the highest and lowest prices of the whole month. The definition of annual K-line can also be derived. Weekly K-line and monthly K-line are often used to judge the mid-term market.
4. K-line drawing
K-line consists of opening price, closing price, highest price and lowest price.
When the opening price is lower than the closing price, it is called the positive line, and vice versa.
The rectangle in the middle is called the entity, the thin line above the entity is called the upper shadow line, and the thin line below the entity is called the lower shadow line.
5. Yin-Yang line
Yin and Yang represent the trend of stock price. In the K-line chart, the positive line indicates that the stock price will continue to rise; The negative line indicates that the stock price continues to fall. The essence of stock price fluctuation is determined by the relationship between supply and demand of stock trading, and it can also be said that it is determined by the strength of buyers and sellers. Generally speaking, the stock price operation has inertia. In particular, Yin Da Line and Dayang Line, in the case of a large volume of transactions, have a great forecast for the market outlook.
6. Entity size
The size of the entity represents the internal driving force of the stock price operation. The larger the entity, the more obvious the upward or downward trend, and the less obvious the opposite trend. Therefore, in most markets where trends are confirmed, entities are relatively large; In the shock city, the entity is relatively small. Because the trend is inertia, we can see the end of inertia from the change of K-line. Small yin and small yang appear after continuous big yin or big yang, which indicates that the trend may stop and enter an adjustment state. If, in a volatile market, a big Yang and a big Yin appear after a series of small Yin and small Yang, it means that the volatile trend ends and the trend market begins.
7. hatch length
The lower shadow line represents the signal of stock price reversal, especially near the important support level and pressure level. It constitutes the resistance for the stock price to move forward in the next stage. No matter whether the K-line is negative, the longer the shadow line in a certain direction, the worse the overall trend of the stock price. That is, the longer the shadow line, the more unfavorable it is for the stock price to rise, and the greater the possibility of the adjusted stock price to fall; The longer the shadow line, the more unfavorable it is for the stock price to fall, and the stock price is likely to rise after adjustment. (Only the difference in probability. When the market is relatively stable, the inertia of the trend will still dominate. )
8.k-line type
I. K-line chart of the market and K-line chart of the stock.
The market K-line chart and the stock K-line chart are the same in terms of the K-line itself, and the judgment method is the same, but the object of expressing meaning is different.
If the K-line of the stock market receives Yang, the Yang line of the K-line of the stock market is smaller than the K-line of the stock market, or even receives Yin line; Indicates that individual stocks are weaker than the broader market (that is, weaker than the market average). If the market K-line is negative, the stock K-line is smaller than the market K-line, or even the positive line; Indicates that individual stocks are stronger than the broader market (that is, stronger than the market average).
B, monthly K-line, weekly K-line, daily K-line and 60-minute K-line.
According to the calculation cycle of K-line, K-line can be divided into year, month, week, day and 60 minutes. . K-line Generally speaking, monthly K-line and weekly K-line are suitable as tools for medium and long-term investors.
The daily K-line is the most accurate and detailed record of the short-term historical stock market, and it is a tool suitable for short-term investors. Due to the lack of T+0 mechanism in the stock market, the reference value of K-line chart below 60 minutes is of little value. (except ultra-short line)